Avoiding the 50% Penalty on Overlooked RMDs
There's no denying the tax benefits of funding a retirement account, one of which is the compound effect of tax-deferred growth. But your money can't avoid the IRS forever.
That's why owners and beneficiaries of traditional IRAs, SEP and SIMPLE IRAs, 401(k)s and 403(b) accounts must meet the deadline for taking their required minimum distributions (RMD), which kick in once they reach the age of 70½.
